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The Next Move For Etsy Investors After The Stock's Recent Outperformance

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The Next Move For Etsy Investors After The Stock's Recent Outperformance
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Shares of Etsy Inc (NASDAQ: ETSY) have surged 58 percent since July 1, versus a mere 4 percent gain in the S&P.

“[Despite this recent outperformance], we believe there is still room for numbers to improve and, therefore, think the stock continues to work,” Citi’s Mark Kelley said in a report. He maintained a Buy rating on the company, while raising the price target from $16 to $20.

Neither the acquisition of Blackbird Technologies nor the new partnership with Intuit Inc. (NASDAQ: INTU) has impacted Etsy’s shares, Kelley mentioned.

Related Link: Meet The Woman Who Turned Mean And Creepy Sexting Messages Into An Etsy Store

Blackbird Acquisition

On September 19, Etsy acquired Blackbird Technologies, with an aim to enhance its search capabilities. Engagement at Etsy’s Exploratory Search rise ~10 percent, while Blackbird claims to have witnessed a 10-20 percent conversion improvement on its website. Kelley expects the acquisition to boost conversion at Etsy.

Intuit Partnership

“Etsy now offers a discounted rate on QuickBooks Self-Employed (U.S. and U.K.), which is immaterial at this point, but is a clear indication that the company continues to look for ways to ease seller paint points,” the analyst wrote.

The EPS estimates for 2016, 2017 and 2018 have been raised from $0.06 to $0.08, from $0.17 to $0.30 and from $0.37 to $0.50, respectively.

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Latest Ratings for ETSY

DateFirmActionFromTo
Sep 2017DA DavidsonInitiates Coverage OnBuy
Jul 2017Morgan StanleyMaintainsEqual-Weight
May 2017CitigroupDowngradesBuyNeutral

View More Analyst Ratings for ETSY
View the Latest Analyst Ratings

Posted-In: Citi Mark KelleyAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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